State targets Croatia Airlines sale by year-end


The Croatian government has said it plans to finalise Croatia Airlines' privatisation by the end of the year as it embarks on another attempt to find an investor for the state-owned carrier. The Croatian Minister for Sea, Transport and Infrastructure, Oleg Butković, said recently, "We will now start more thorough work on the privatisation but it is difficult for me to say when exactly will we select a strategic partner. The deadline is by the end of the year. I don't know and can't speculate on how much the partner needs to invest into the airline. A financial advisor will determine the best possible sales model following a detailed review of Croatia Airlines' business".

The CEO of Croatia Airlines, Jasmin Bajić, whose term at the top job was extended by another six months last week for a fourth time, previously said the airline requires some 33 million euros in order to launch a new investment cycle and better compete against its rivals. "The situation is not good because we cannot develop. Currently, we can only stagnate and shrink. Therefore, we need a new investment cycle and capital which is why the ownership structure should change through recapitalisation. This will not be a sale in the traditional sense, rather a recapitalisation for the sake of development", Mr Bajić said. He added, "Competition will become more fierce and we will seek ways in which to survive. We don't want to back down. I guarantee the process will be successful".

The Croatian government has set up a multi-member, inter-agency committee whose main task is to seek out potential investors for Croatia Airlines. Minister Butković noted the process of selecting a strategic partner should not be limited to those within the European Union. "There are rules for those from outside the EU and we do not want to shut our doors to them. Considering the tourism industry and Croatia Airlines' importance, one of our main goals and interests is for the airline to remain a Croatian brand, because the tourism sector, airports and many others depend on it", Mr Butković said.




Comments

  1. The government should stop dragging their feet and just sell it to Lot or Garuda.

    ReplyDelete
    Replies
    1. not this Garuda bs again - GA is struggling badly itself.

      Delete
    2. LOT will collapse in a matter of years. It's on very shaky financial foundations.

      Delete
    3. Lot is bouncing back, its foundation is getting stronger.

      Delete
    4. What did happen with Garuda? They went publicly on record to say that they wanted to buy OU. They even outlined some plans for the company... and then nothing.

      Delete
    5. They are probably still negotiating. These things take a while.

      Delete
  2. If they don't find a buyer they already said they will sell the company piece by piece, which in my opinion would be the worst possible solution.

    ReplyDelete
  3. I think bankruptcy is more likely than finding a new owner.

    ReplyDelete
  4. nema zainteresiranih..CTN se mora sama za sebe pobrinuti. Mijenjajte management, lako je zivjeti "na guzove" i ne imati nikakvu odgovornost.

    ReplyDelete
  5. Let's just hope they find someone this time around.

    ReplyDelete
    Replies
    1. Are there any takers? Anyone express any interest?

      Delete
  6. "We will now start more thorough work on the privatisation.."

    So up to now it was not serious enough?


    "I don't know and can't speculate on how much the partner needs to invest into the airline"

    LOL

    ReplyDelete
    Replies
    1. The government is simply not interested in OU's future. They should be more "agressive" in trying to sell it.

      Delete
  7. No serious company will invest in a small airline like OU is. Lufthansa clearly said to 4K, if ex Yugoslavia would hve one airline, we would buy, but not small left over airlines from each republic with small markets and barely 1.5 to 3 mio passengers. Yet the markets in ex YU are not deregulated. Everywhere the governments are involved and are detering investors from investments or would we invest our millions if we would hve to deal with a unpredictable government afterwards?? With the increasing lack of qualified staff everywhere in Europe it makes less and less sense to operate full airline management / operation / maintenance offices in each little capital of Europe; therefore lets stop dreaming and face reality, the luxury of having 1 airline per mini country is definitely over. Taxpayers money could be invested better and more sustainable.

    ReplyDelete
    Replies
    1. First, I am very critical of OU, I believe it's corrupt and mismanaged. But, what you wrote for all or almost all ex-yu countries is not the case with Croatia. Its market is 11 million passengers, very far away from 1.5 to 3 you talk about, Croatian market is deregulated because of EU rules and laws, and privatization attempts are there to try to save taxpayers money, not the other way around. Would that attempt be successful, not so sure about because both OU "management" and government are totally incompetent, but realistically speaking, and looking the potential of the market, the one with the most potential within ex-yu is Croatian.

      Delete
    2. Nailed it. That's it, fully agree with both arguments. The level of state interventionism in particular, is hoffific. Not to mention the red tape on top of it. In Croatia for instance, the state gives guarantees in ship building, the financial sector...heck even retail at all but the small business levels. Worse yet, if that weren't the case, most people would go nuts. No wonder no one wants to invest except for the Chinese and the young folks are saying: buh bye. We don't belong in the EU, the mentality is still Yugoslavia - circa 1970s.

      Delete
    3. JU520 BEGLAX
      +1000

      Delete
    4. At least Croatia doesnt hinder foreign airlines to fly there.
      MfM

      Delete
    5. the HR market might be 11 mio but OU picks up 2.5 mio passengers only. Deregulated? Slovenia is in the EU. Look at Slovenias government how they are defending and protecting Adria Airways. And Croatia is corrupt you said, exactly the problem why larger airliners do not want to invest money into a company / country where all depends on the mood of some politicians. You will see no serious airline will invest into OU, except maybe companies like 4K or other questionable Investors. Time will tell :-)
      Flew btw FRA-SPU-FRA last 7 days. OU remains my preferred carrier in the region as Croatia is my favorite Destination in the region :-)

      Delete
  8. To oni ozbiljno. Lol.

    ReplyDelete
  9. Good luck to the Croatian government , but I don't think they will find at least an airline to buy them . And that's because I believe a smart airline will just wait for Croatia airlines to go bankrupt and then take over , mostly because of the coast cities fillet .

    ReplyDelete
  10. What happened to iniative LOT had? Or was it nothing but a wishful thinking?

    ReplyDelete
    Replies
    1. I think it was something like this:

      Gov: hey Lot, wanna buy OU?

      LO: sure, let us have a look and we will let you know.

      Gov: OMG we found a buyer, OU is saved, sound all the bells. Our party and the minister have saved thousands of Croatian jobs.

      LO: Yeah, no thanks.

      Gov: *silence* let's move on and never talk about this.

      Delete
    2. I don't see what would be an added value for LO. It can fly Croatian transfer passengers to WAW (or BUD) without buying any airline. The same with Polish tourists flying for holidays...

      Plus, the Nordica experiment doesn't prove to be so successful.

      Delete
    3. Hahah, great comment anon 10:16

      Delete
  11. I Personally I don't think they want to or ever had any intention to sell the airline.

    ReplyDelete
    Replies
    1. I think at first they didn't but when they realized they can't steal as much as they used to it was already to late to find a buyer.

      Delete
  12. I wonder where is Bravo Hrvatska guy today? And would he really dare to write it today again, after all these clever comments on stupid and irresponsible minister's statements on failed and corrupt OU?

    ReplyDelete
    Replies
    1. Bravo Hrvatska, the best airline in Europe.

      Delete
    2. LOL LOL LOL To majstore, bio bi mi tuzan dan da se nisi javio :) :) :)

      Delete
  13. It would make most sense for Lufthansa to buy them and integrate them somehow into Eurowings.

    ReplyDelete
    Replies
    1. Does Lufthansa need them?

      Delete
    2. Eurowings made a loss of more than 250 million Euros in Q1 this year. The LH Management is still dreaming about getting EW into profitability by year´s end. This is so unrealistic and in 2-3 years we will see a different approach to EW. They will never make it.

      Delete
  14. I don't understand that it is that hard to get interest for OU.

    ReplyDelete
  15. Croatovanje, the sequal to Jatovanje.

    ReplyDelete
    Replies
    1. The OU privatisaion saga continues.

      Delete
  16. They extended Bajic's term again?? Wasn't he supposed to be a temporary six month solution?

    ReplyDelete
    Replies
    1. To me it shows that the government simply doesn't care. They ate happy with the status quo.

      Delete
    2. *are happy

      Delete
    3. This CEO is living his life in Disneyland. Who on earth ever heard of a "strategic partnership being purely financial" ? It is either financial and therefore some form of recapitalisation, or, it is a strategic investment, which means, management know-how, systems, aircraft, network etc etc.

      Delete
  17. No chance they can sell it in 7 months unless they already have a buyer lined up which I highly doubt they do. The negotiations themselves would take months and months.

    ReplyDelete
  18. Did Plenkovic pitch OU to the Chinese when they were in Dubrovnik for the belt and road summit?

    ReplyDelete
  19. They have been talking about a financial advisor for privatisation since mid last year!!!

    ReplyDelete
    Replies
    1. This is being drawn out a lot. Hope they manage to sell it to someone.

      Delete
  20. Simple no Buyer.

    ReplyDelete
  21. Zašto CTN treba prodati? Sećam se velikog broja postova pre pet godina pred stvaranje ASL i kritike na račun partnerstva sa Etihadom na temu zašto se na medjunarodnom konkursu ne nadje profesionalni menadžment? Za razliku od nekadašnjeg Jat-a CTN je u mnogo boljoj situaciji.

    ReplyDelete
    Replies
    1. А колико ће још бити у бољој ситуацији него што је то био стари Јат? Кроацијан сваког дана постаје све безвреднија, посебно након продаје вредних ствари попут слотова на Хитроу. Већ су продали Плесо превоз а и ти мотори што имају постају све безвреднији са сваким новим А320нео који изађе на тржиште.
      Мислим да је време да постанете свесни и да схватите да једноставно нико нормалан неће купити ОУ сем уколико се не направи политички договор иза затворених врата, баш као што је то био случај са Јатом.

      Delete
    2. Zdravo cirilicni Anonimuse! U principu se slazem sa tobom. Ipak, postoji jedna "mala" razlika : Trziste Srbije u doba politickog dogovora za "privatizaciju" Jat-a je bilo 2 miliona, trziste Hrvatske danas je 11 miliona. Zasto ne iskoristiti taj potencijal? Cao!

      Delete
    3. Mislim da malo precjenjujes uticaj 11M putnika na proces akvizicije iz vise razloga.

      Trziste ima 11 miliona i vise putnika, ali procenat koji OU trenutno prevozi je poprilicno malo, premali ako mene pitas. Pogotovo ljeti kad ih je najvise i kad se najvise para pravi. Slazem se da se neki dio moze tu otkinuti ali gledajuci ko su protivnici (veliki LCC vrlo cesto), nekom kao OU to bas nebi bilo lako i jeftino. AKo neko uzme OU zbog novih putnika koji ce se pojaviti u narednim godinama, pitanje je koliko hrvatsko trziste ima kapaciteta za rast (hoteli, radnici, nova ili ozivljena trzista u Turskoj, Egiptu itd). Tu sad niko nema kristalnu loptu ali nije nista sigurno. Druga strana price je sama sezonalnost tog trzista, koju niko ne voli, ali je cinjenica. Tako da nije tu bas sve crno bjelo. Da ima potencijala ima definitivno ali taj potencijal umnogome bio bolji prije 5 godina recimo.

      Delete
    4. Јат је превозио око два милиона, тржиште је било много веће од тога, око пет милиона. Србија има већу предност јер су путници сконцентрисани око једног аеродрома док то није случај у Хрватској. Дакле оперативни трошкови у Хрватској су знатно већи и то је релативно негативна ствар. Српско тржиште је слично оном у Мађарској или Чешкој док је хрватско разбацано као у Грчкој. Дакле тих 11 миљуна путника не може да се гледа монолитно.

      Delete
    5. 2013. god. u Srbiji je prevezeno 3.500.000 avioputnika. Izvor :Jovana G.Kuljanin, Prof. Saobracajnog fakulteta Univerziteta u Beogradu. Godinu-dvije ranije, pola miliona manje. Dakle nikakvih 5 miliona, o 5 ili 6 miliona mozemo govoriti zadnje dvije-tri godine. Sto se tice "monolitnosti" I broja aerodroma u HR upravo Grcka i Aegean pokazuju kako se i sa takvim nemonolitnim i troskovno skupljim trzistem moze biti uspjesan, naravno uz pametno investiranje i dobar management.

      Delete
    6. У праву си, 3.5 миљуна путника је било 2013. али тај стрмоглави раст заправо показује потенцијал српског тржишта где ће само Београд прећи 6 милиона путника у 2019. години. Претпостављам да је то главни разлог зашто је Ванси толико платио за аеродром.

      Што се Грчке и Еџиана тиче, само не заборавимо једну велику разлику, зими Еџиан има тржишта где може да упосли те авионе. Ту је Атина, Хераклион али и Солун те се капацитет прелије на друге градове. Шта да се ради у Хравтској где зими нема посла на обали а Загреб стагнира и где је потражња све мања и мања. Ево и флајдубаи и КЛМ су у старту смањили летове ове зиме.

      Из ових и много других разлога нико неће купити ОУ. Сувише варијабила и ризика има за релативно мало и раштракано тржиште. Нема Хрватска авио-промет као Грчка, Шпанија или Турска па да се исплати улагати. На крају ОУ ће једноставно пропасти а њихову улогу у Загребу ће преузети неко други ко ће се сконцентрисати на локалне путнике и то ти је то. На обали ОУ више и нема неку улогу те се њихово нестајање неће приметити или осетити.

      Хрватска Влада је сувише про-ЕУ да би склапала такве договоре са источњацима као што је то Србија урадила 2013. године.

      Delete
    7. Strmoglavi rast u Srbiji o kom pricas se desilo zbog tranzitnih putnika Air Serbie i jaceg angaziranja LCC-a. Aegean takodjer ne zivi od P2P putnika nego od tranzita, bez obzira sto su zemlja i trziste veci od hrvatskog. Isto se moze napraviti i u HR sa kvalitetnom privatizacijom. Ne tvrdim da ce do nje doci ili da ce ako je i bude biti kvalitetna ali tvrdnja da postoji potencijal srpskog trzista za srpsku kompaniju a ne postoji potencijal hrvatskog trzista za hrvatsku kompaniju nema ni uporista ni opravdanja. A Peljeski most, najvecu investiciju u HR koju financira EU grade Kinezi. Toliko o tome sto ova vlada, koju ne podrzavam, ne smije sa "istocnjacina" Cao!

      Delete
  22. What is the current OU workforce? Is the number efficient?

    ReplyDelete
    Replies
    1. At least 200 more than needed, sitting in the offices, doing nothing, some of them on invented positions, non-existent in any other airline

      Delete
  23. The longer they wait the more difficult it will become.

    ReplyDelete
  24. I already wrote this once, and I will write it again : What Croatian government should do is the following : Find one non-EU investor, for example Chinese, eager to invest, for 49 % of the company, in fresh money, needed for development, and one EU investor, maybe LOT, or Finnair which is doing pretty well, or some other financially successful airline which is not "big name" or brand, and there are such in EU, for 20-30-40 % of the company, in slots, regional planes, or other assets, maybe even capital, and the state/government remains the owner of 10-20-30 percent. Based on investment share owners choose Supervisory Board, which selects professional management, majority of shares remain within EU, all important decisions brought only if all 3 partners agree, and all 3 partners control which other, and problem solved. No comitees needed, no advisors, no waste of time and money, everything is actually very simple

    ReplyDelete
    Replies
    1. But as Michael said, they are mentally still in Yugoslavia in 1970

      Delete
    2. The Chinese do not INVEST. Look at their bussiness INVESTMENTS in Wetsern Europe. They are so unreliable and driven only by politics. FRA Hahn, Parchim Maga cargo hub, HNA selling Gategourmet and millions of oher unserious business ventures of the Chinese.

      Croatian Governement has found someone to pretend that they are their saviours. In the end it will turn out how it turns out with the Chinese. _ Big and financially expensive endevour.

      Delete
    3. Chinese do not invest? LOL LOL LOL. You listed 3 failed projects, but there are hundreds and hundreds of successful Chinese investments all over the world. And I mentioned them because of the recent meetings, Silk Way and their strategy to INVEST,especially in Europe. But feel free to change Chinese I mentioned with Arabic, Indian, Turkish, Indonesian.... I hope you don't consider all of them unreliable, unsuccessful and politically influenced

      Delete
    4. Perhaps they can pitch OU to Hainan. It was interested in them after all.

      Delete
    5. Hainan has paused foreign acquisitions at the moment.

      Delete
  25. I think some Asian/Chinese airline could be a possible partner.

    ReplyDelete
  26. Not again! How much money do we have to spend for these consulting companies with zero results? As far as I would like for OU to find a buyer (LO would be a good choice), I'm afraid it's too late.

    ReplyDelete
    Replies
    1. +1 I fear this privatization attempt will turn out as all the others - without any concrete results.

      Delete
  27. What will happen if this privatisation attempt also fails?

    ReplyDelete
    Replies
    1. Then OU will get another credit with the government as a guarantor

      Delete
    2. and then OU would probably have to go through some kind of restructuring again ordered by EU.

      Delete
    3. https://novac.jutarnji.hr/aktualno/konzorcij-pbz-i-dvb-bank-savjetovat-ce-croatia-airlines-u-procesu-dokapitalizacije/8787200/

      Delete
    4. Hallelujah!

      Delete
  28. Agony continues.

    ReplyDelete
  29. I think the government as an owner is not a good thing. OU definitely needs a change so this is a good development.

    ReplyDelete
    Replies
    1. True. In the long run I do think OU needs a partner.

      Delete
  30. In the end nothing will happen as usual

    ReplyDelete
  31. No one is interested. We already had 'interest' from Garuda, Aegean, Turkish, Lufthansa, LOT aand absolutely nothing happened.

    ReplyDelete
  32. I would prefer if a non European airline or company bought them. But then they would not be able to get over 49%.

    ReplyDelete
    Replies
    1. I would prefer LH, but only if they keep the Croatia airlines as a separate company (but, highly doubt it could ever happen).

      Delete
    2. Anything other than a European airline would be good for OU because it eliminates the possibility of them being a feeder.

      Delete
    3. Qatar Airways would be perfect!

      Delete
    4. or Emirates :)

      Delete
    5. Tim Clark said last year that buying airlines is not what they are going to pursue and that they burnt themselves by buying Sri Lankan Airlines

      Delete
    6. Also Al Baker said that they won't be buying struggling airlines like Etihad did.

      Delete
    7. if Etihad and Emirates merge Air Serbia will become Emirates company :-)

      Delete
    8. Wasn't TK interested?

      Delete
    9. They denied this:

      Turkish Airlines has previously been linked to a potential takeover of its fellow Star Alliance member Croatia Airlines, however, the carrier has denied such claims. "Such speculation is incorrect. We have a very professional partnership with Croatia Airlines which we will continue to nurture in the future", Mr Cantimur said.

      http://www.exyuaviation.com/2018/04/turkish-airlines-plans-third-croatia.html

      Delete
    10. Arabs will not be able to deal with OU. The best solution for OU will be to quit Star Alliance and form part of IAG.
      OU can have access to 2 important hubs: LHR and MAD.
      IAG now has BA, IB, Level, VY, EI and possibly QR.

      oneworld is much prestigious than Star Alliance.

      Delete
    11. E ako je more prestigious onda svakako...

      Delete
    12. OU wants IAG but does IAG want OU? Hmmm....

      Delete
  33. Just not 4K Invest please!

    ReplyDelete
    Replies
    1. I don't think they are in a position to buy any other company.

      Delete
    2. I actually think a OU-JP tie up would have benefited both airlines.

      Delete
  34. It is no doubt that it will be difficult to attract interest. Main reason is that airlines are focused on different acquisitions.

    ReplyDelete
    Replies
    1. Which other acquisitions? Alitalia has been on sale for a year and nothing.

      Delete
  35. BRAVO HRVATSKA!

    ReplyDelete
    Replies
    1. Ne urlaj, nije pristojno. A i pomalo je bolesno

      Delete
  36. Although not directly related to the privatization, I must say I don't like Croatia Airlines' new albino livery pictured in the article.

    ReplyDelete
    Replies
    1. Yes, too much white for my taste.

      Delete
    2. I like it. Before it looked like a boat in teh Adriatic sea.

      Delete
  37. They finally chose a privatization adviser today!

    ReplyDelete
    Replies
    1. Good it only took them a year.

      Delete
    2. Who did they select?

      Delete
    3. Privredna banka Zagreb & DVB Bank.

      Delete
  38. To ne treba prodati nego pokloniti Lufthansi i još im platiti da ih uzmu.

    ReplyDelete
    Replies
    1. Ma nema tu kruha. Mikro P2P kompanije ne mogu opstat.

      Delete
  39. I ja stalno govorim da ću skinut 10kg i opet biti ispod 80.

    ReplyDelete
  40. So could we finally see Croatia Airlines privatization completed in 2019?

    ReplyDelete
    Replies
    1. Completed in 2019 and they did not even start with actual steps? It will be good if they start by the end of the year.

      Delete
  41. Same old story. They are repeating the same thing and nothing comes out of it.

    ReplyDelete

Post a Comment

EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. A full list of comment guidelines can be found here. Thank you for your cooperation.